The Expensing of a Long-Lived Asset Such as a Wastebasket

question 49

Multiple Choice

The expensing of a long-lived asset such as a wastebasket is justified by which of the following accounting rules or principles?

• A)Matching
• B)Materiality
• C)Full disclosure
• D)Consistency

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Definitions:

Test Statistic

A value calculated from sample data, used to decide whether to reject the null hypothesis in a statistical test.

Critical Value

The threshold value that a test statistic must exceed for the null hypothesis to be rejected in hypothesis testing.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a false positive.

Type II Error

The error of failing to reject a false null hypothesis, also known as a false negative.